Ripple (XRP) Looking Ready for Another Short-Term Rally: One Resistance to Go

Technical analysis suggests that Ripple (XRP) price might be preparing for another rally. This observation is based on an analysis post made by ZAYK Charts on X. They noticed a pattern in XRP’s price action that could trigger a continuous upward move upon breaking out of a key zone.

ZAYK spotted a bullish pennant forming on XRP’s 8-hour timeframe chart. This pattern usually signals a continuation of an upward trend and has been developing steadily over recent trading sessions. “XRP is still moving inside the bullish pennant,” notes ZAYK Charts in their latest analysis, suggesting that patience might soon be rewarded.

The current price action shows XRP consolidating within converging trendlines, forming what technical analysts refer to as a pennant formation. This pattern emerges following a strong upward movement, which forms the “flagpole” of the pattern.

What makes this particularly interesting is how the price has been maintaining progressively higher support levels while testing the upper resistance boundary.

The Projected XRP Price Target

Following a successful breakout from this pattern, ZAYK Charts has projected a target of $3.50. This target price may seem optimistic; however, it's important to note that this projection follows established technical analysis principles, measuring from the pattern’s formation.

Also Read: Hedera (HBAR) Might Face a Major Decline If This Support Fails

The key to this setup, as ZAYK Charts emphasizes, will be the eventual breakout from the pennant formation. The 8-hour timeframe suggests this move could unfold over several days, giving traders ample time to position themselves. However, it's worth noting that volume will play a crucial role in validating any breakout.

The formation of this bullish pennant on XRP’s chart comes at an interesting time for the cryptocurrency market. The pattern's completion would require sustained buying pressure, something that could be influenced by broader market sentiment and XRP-specific developments.

Trading within these patterns typically requires careful attention to market signals. While ZAYK Charts presents a compelling case for the $3.50 target, the immediate focus should be on the pennant’s upper resistance line, which is the final hurdle before a potential breakout could occur.

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